Investing.com - The dollar rose against most major global currencies on Thursday as market participants looked past President Barack Obama's reelection and began to brace for tax hikes and government spending cuts due to strike the U.S. economy at year's end.
In Asian trading on Thursday, EUR/USD was down 0.14% at 1.2754.
Investors on Thursday put U.S. elections behind them and looked towards the end of this year, when tax breaks are set to expire at the same time cuts to government spending are scheduled to kick in, a combination known as a fiscal cliff that could send the country into a recession next year if left unchecked by Congress.
Fears Democrats and Republicans will clash over tax hikes and spending cuts sent stocks plunging and the dollar gaining amid a session marked by fears of brinkmanship and finger pointing that marked the 2011 debt-ceiling debacle.
While Congress avoided disaster then by striking a deal at the very last second, the U.S. teetered on the brink of default, which prompted the Standard & Poor's ratings agency to strip the U.S. of its coveted AAA rating.
Fitch Ratings said earlier that it might downgrade the U.S. if the economy drives over the fiscal cliff.
Elsewhere in Europe, German industrial production dropped 1.8% in September, well beyond expectations for a 0.5% decline, which sent investors chasing the safe-haven dollar.
Spanish industrial production tumbled 7% in September, about twice as much predicted by economists.
The European Commission, meanwhile, cut its growth forecast for the eurozone to 0.1% in 2013, down from a May estimate of 1%.
Germany's growth forecast fell to 0.8% from 1.7%.
The dollar remained firm despite reports that Greece's parliament approved to accept EUR13.5 billion in spending cuts and tax hikes needed to tap a new tranche of bailout money.
The greenback, meanwhile, was up against the pound, with GBP/USD trading down 0.03% at 1.5981.
The dollar was down against the yen, with USD/JPY trading down 0.26% at 79.79 and up against the Swiss franc, with USD/CHF trading up 0.09% at 0.9456.
The dollar was mixed against its cousins in Canada, Australia and New Zealand, with USD/CAD trading down 0.01% at 0.9968, AUD/USD down 0.02% at 1.0409 and NZD/USD trading down 0.13% at 0.8174.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.04% at 80.9.
In the U.S. later Thursday, the government will release official data on trade balance as well as the weekly data on initial jobless claims.
In Asian trading on Thursday, EUR/USD was down 0.14% at 1.2754.
Investors on Thursday put U.S. elections behind them and looked towards the end of this year, when tax breaks are set to expire at the same time cuts to government spending are scheduled to kick in, a combination known as a fiscal cliff that could send the country into a recession next year if left unchecked by Congress.
Fears Democrats and Republicans will clash over tax hikes and spending cuts sent stocks plunging and the dollar gaining amid a session marked by fears of brinkmanship and finger pointing that marked the 2011 debt-ceiling debacle.
While Congress avoided disaster then by striking a deal at the very last second, the U.S. teetered on the brink of default, which prompted the Standard & Poor's ratings agency to strip the U.S. of its coveted AAA rating.
Fitch Ratings said earlier that it might downgrade the U.S. if the economy drives over the fiscal cliff.
Elsewhere in Europe, German industrial production dropped 1.8% in September, well beyond expectations for a 0.5% decline, which sent investors chasing the safe-haven dollar.
Spanish industrial production tumbled 7% in September, about twice as much predicted by economists.
The European Commission, meanwhile, cut its growth forecast for the eurozone to 0.1% in 2013, down from a May estimate of 1%.
Germany's growth forecast fell to 0.8% from 1.7%.
The dollar remained firm despite reports that Greece's parliament approved to accept EUR13.5 billion in spending cuts and tax hikes needed to tap a new tranche of bailout money.
The greenback, meanwhile, was up against the pound, with GBP/USD trading down 0.03% at 1.5981.
The dollar was down against the yen, with USD/JPY trading down 0.26% at 79.79 and up against the Swiss franc, with USD/CHF trading up 0.09% at 0.9456.
The dollar was mixed against its cousins in Canada, Australia and New Zealand, with USD/CAD trading down 0.01% at 0.9968, AUD/USD down 0.02% at 1.0409 and NZD/USD trading down 0.13% at 0.8174.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.04% at 80.9.
In the U.S. later Thursday, the government will release official data on trade balance as well as the weekly data on initial jobless claims.